Article By: Britney L. Hebert – Attorney at Law
The 2025 Louisiana Legislative Session should have been an opportunity to bring real relief to policyholders struggling with rising insurance rates. Instead, lawmakers passed bills that strengthened insurance company protections while leaving consumers with fewer legal rights.
This year’s changes matter to everyone in Louisiana — from car accident victims to homeowners trying to rebuild after storms. To understand what’s at stake, here’s a breakdown of the legislation, what it means for you, and how you can protect yourself.
Record Profits, Rising Premiums
Insurance companies are not struggling. In fact, they are thriving. Nationally, property and casualty insurers reported nearly $169 billion in profits in 2024, even as families faced higher premiums. Here in Louisiana, insurers collected over $100 million in auto insurance premiums in 2023 but paid out only $55 million in claims.
Despite these record profits, lawmakers framed new legislation as “reform” — suggesting it would reduce rates — while the real effect is to protect insurers’ bottom line.
Legislative Changes That Hurt Consumers
Several bills passed in the 2025 session make it harder for everyday Louisianans to recover fairly after an accident or loss.
Lower Jury Trial Threshold
The threshold for requesting a jury trial was lowered from $50,000 to $10,000. On paper, this may sound like it gives more people access to juries. In reality, it increases costs and delays for smaller claims, making the process less efficient for injured victims while benefiting insurers who can afford lengthy trials.
Collateral Source Rule Eliminated
The Collateral Source Rule, which previously prevented insurers from reducing what they owed based on payments from your own health insurance, was stripped away. Now, insurers can offset your recovery, meaning you may walk away with less compensation even if you had the foresight to maintain health coverage.
Limits on Direct Action Against Insurers
Changes to La. R.S. 22:1269 now limit the circumstances under which you can sue an insurance company directly. This means more red tape, more waiting, and fewer options for consumers seeking accountability.
Changes to the Statute of Limitations
One of the few consumer-friendly changes extended the time to file a tort claim from one year to two years. While this provides more breathing room, it only applies to incidents occurring after July 2024. For most people with pending claims, the old one-year deadline still applies.
What Lawmakers Failed to Address
Perhaps the most telling part of the 2025 session is what didn’t happen. Legislators did not:
- Increase transparency on how insurers set premiums
- Require justification for record profits alongside higher rates
- Strengthen penalties for insurers that delay or deny valid claims
Instead of focusing on consumer protection, the session left insurers with more tools to limit payouts while Louisiana families continue paying some of the highest insurance rates in the country.
Who Is Most Affected
These legislative changes impact nearly every Louisiana household:
- Accident victims may face smaller recoveries and more complicated lawsuits.
- Homeowners dealing with storm or flood damage have fewer protections in disputes with their insurers.
- Everyday drivers continue to see higher premiums with little explanation.
Protecting Your Rights
Even in a difficult legislative environment, you are not powerless. Here’s what you can do:
- Know your rights. Understanding these changes helps you avoid being taken advantage of.
- Document everything. Keep records of your claims, conversations, and payments.
- Seek legal advice. If your insurer denies, delays, or undervalues your claim, consult an attorney who can hold them accountable.
- Stay engaged. Contact your state representatives and demand real consumer-focused reform.
Final Thoughts
The 2025 Legislative Session shows a troubling pattern: lawmakers prioritizing insurers’ profits over the rights of Louisiana citizens. These changes make it harder for victims to recover, for families to rebuild, and for communities to demand accountability.
But while the law may be shifting, your rights still matter — and you don’t have to face insurers alone.
Protect Your Rights Today
If you believe your insurance company is using these new laws to deny you fair treatment, we can help.
Contact Glenn Armentor Law Corporation today for a free case review. Our attorneys are committed to standing up for Louisiana families and making sure the legal system serves people — not just powerful corporations.
